Inulin, a polysaccharide predominantly composed of fructose molecules, possesses a linear chain structure with β-(2 → 1) linkages between fructose units and usually has a glucose molecule at one end of the chain. It is not only an edible natural functional polysaccharide, but also a soluble dietary fiber, with a variety of physiological functions such as antioxidant, promoting the growth of gut flora and maintaining its homeostasis, enhancing gut immune function, promoting nutrient absorption, lowering glycemia, as well as providing anti-carcinogenic, weight loss and constipation relief. This review provides a comprehensive overview of the latest research advances in the extraction, purification, structural characterization, and bioactivities. It is intended to lay the theoretical and research foundations to enable further exploration and effective progress in the advancement towards the production of inulin.